Baltic Index rebounds to Seven-Month Peak on Higher Rates across Vessel Segments

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for vessels transporting dry commodities, rebounded to its highest level in nearly seven months on higher rates across vessel segments.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was up 58 points, or 3.5%, at 1,738, its highest since November 18.

The capesize index rose 140 points, or 4.7%, to 3,096, a near seven-month high.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, climbed $1,160 to $25,679.

Iron ore futures prices rebounded, as signs of progress in trade talks between the world’s two largest economies bolstered sentiment, although early uncertainty over a final agreement and softening steel demand capped further gains.

President Donald Trump announced that the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities.

The panamax index firmed 37 points, or 2.9%, to 1,337, its highest level since May 12.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, added $338 to $12,036.

Among smaller vessels, the supramax index snapped a six-session losing streak, gaining 3 points to 922.

Source: Reuters